Passive investing is an investment strategy that involves tracking a market index to replicate its returns. Managers of passive strategies don't individually pick investments to beat the market.
Passive Investing
What is passive investing?
Passive investments can track nearly any index, such as the Dow Jones Industrial Average or S&P 500. These indexes can also represent a sector of the market. Passive investments often have lower fees compared with actively managed investments. Since they are meant to replicate market returns, they aren't expected to outperform the market.
Passive investments can track nearly any index, such as the Dow Jones Industrial Average or S&P 500. These indexes can also represent a sector of the market. Passive investments often have lower fees compared with actively managed investments. Since they are meant to replicate market returns, they aren't expected to outperform the market.